QUESTION
Change a company from LLC to Corporation
Asked on Feb 19th, 2015 on Business Law - California
More details to this question:
Hello, My partner and I have an LLC in CA for the last 12 months in the tech space. The LLC is active, generate IP ( product prototypes, design etc). The LLC company is also signed on few legal agreements such as NDAs, partnership agreements etc. We are now considering shifting the company into a corporation ( and incorporate in Delaware) so we can grant equity easily to external investors and advisors. We saw few online service that allow you to incorporate in Delaware for few 100s dollars. My question: if we use these online services for incorporation, how do we transfer the IP and the previous agreement we signed from the LLC into the new legal entity? Is it a simple process we can do by ourself or will it require a lawyer to do so? Thanks !
1 ANSWER
2 Awards
You can transfer the existing assets of your company to the new entity through by way of assignments. I would certainly suggest that you do this with the assistance of an attorney to ensure that you do it properly and to make sure that you do not breach any of the other agreements that the LLC has signed. The process would be relatively simple and inexpensive.
Thanks,
Jon
Answered on Feb 19th, 2015 at 4:55 PM